Numismatist Market needs influx of new buyers spending money. I monitor PCGS 3000 and track vs year open.
Material based primarily on BV very liquid but of course bullion will determine what you will get.
I monitor PCGS 3000, Dollar Market (PCGS Index), gold, silver from some benchmark like Jan 01. I also know how I am doing at shows and online. Consequently I draw my own conclusions.
I will sit on material (unless positive GM) unless some situation forces blowout of some. At shows I have a lot of material priced at cost or bid plus 10 pct just to move it, be competitive as I can't operate on this kind of narrow spread on eBay. If people coming in show won't even buy at that then I know it was a bust anyhow (lack of real buyers).
I would suggest portfolio based on a mix of bullion material and numismatics you collect, enjoy bulking up on. Putting together a grading set of ones area of interest can be fun.
Yes there are keeper items I will sit on until sell at profit. Bullion I will blow out if need be.
@BillJones said:
The trouble is the market dries up, and there is no much to buy after the prices drop. It takes a while for the owners to accept the fact that they are going to get less. Therefore the buying opportunities are limited.
It is amazing just how long many owners are willing to hold out, hoping to avoid cutting prices. Years can pass.
That is quite true for some dealers. I've seen guys hold coins for years, even the bad buys which are totally hopeless for the foreseeable future.
Dead stock does you no good. Cash does if you know what to do with it. The smart dealers cut their losses and move on.
Retired dealer and avid collector of U.S. type coins, 19th century presidential campaign medalets and selected medals. In recent years I have been working on a set of British coins - at least one coin from each king or queen who issued pieces that are collectible. I am also collecting at least one coin for each Roman emperor from Julius Caesar to ... ?
@ShadyDave: excellent post...it's not just young people who shop online and don't have time to go to shows...this is the how many and maybe most successful business people of all ages operate...they want top quality and they have the money...
One area LCS says the summer slowdown is about over, and early Christmas shoppers are starting to show up. Collector coins will continue to be profitable as long as they continue to walk in the door.
The other LCS continues to move bullion and dollars by the roll. Lots of people interested while metals are heating up.
Both have different customer bases that keep the lights on. Very nice to see that some B & M shops can do it with $0 in sales on the internet.
@BillJones said:
The trouble is the market dries up, and there is no much to buy after the prices drop. It takes a while for the owners to accept the fact that they are going to get less. Therefore the buying opportunities are limited.
Who could blame them? Why would anyone sell a rare, PQ coin for the same prices as the overgraded garbage that has flooded the market in recent months? I think a problem is that many holders of PQ coins are so adverse to grade inflation, they refuse to upgrade their coins so they can liquidate.
@ErrorsOnCoins said:
What I just read is that ebay allows the B&M business to stay afloat.
I run an ebay business and have almost no overhead as I do not have a B&M.
EBay and PayPal fees are part of your overhead.
The words "almost no" imply some overhead.
Respectfully, I wouldn't call 10-13% "almost no" overhead, but I guess that is really an issue of semantics. To be sure, an online presence through eBay likely has a lower overhead than a brick or mortar, but I don't think it is negligible anytime 10-13% of incoming revenue is going to a third party rather than into my pocket (or to pay an obligation of mine like taxes).
@ErrorsOnCoins said:
What I just read is that ebay allows the B&M business to stay afloat.
I run an ebay business and have almost no overhead as I do not have a B&M.
EBay and PayPal fees are part of your overhead.
The words "almost no" imply some overhead.
Respectfully, I wouldn't call 10-13% "almost no" overhead, but I guess that is really an issue of semantics. To be sure, an online presence through eBay likely has a lower overhead than a brick or mortar, but I don't think it is negligible anytime 10-13% of incoming revenue is going to a third party rather than into my pocket (or to pay an obligation of mine like taxes).
What is the overhead for a good functional website?
@ErrorsOnCoins said:
What I just read is that ebay allows the B&M business to stay afloat.
I run an ebay business and have almost no overhead as I do not have a B&M.
EBay and PayPal fees are part of your overhead.
The words "almost no" imply some overhead.
Respectfully, I wouldn't call 10-13% "almost no" overhead, but I guess that is really an issue of semantics. To be sure, an online presence through eBay likely has a lower overhead than a brick or mortar, but I don't think it is negligible anytime 10-13% of incoming revenue is going to a third party rather than into my pocket (or to pay an obligation of mine like taxes).
What is the overhead for a good functional website?
I don't understand the question or your point. All of the costs incurred in the operation of your business that are not directly chargeable to your product are part of your overhead. That includes website creation, maintenance, hosting, etc. You can argue all you want that eBay is a good value which may or may not be true depending on what you're selling. Regardless, I don't think a double digit cut into potential profit is de minimis or "almost nothing."
I don't know of any dealer who thinks the coin market is on fire. Is it slow? It is certainly better than 9-12 months ago. I think our business is a good barometer of overall activity since we literally sell everything...coins valued at a few dollars, 90% silver, all certified coins, and 6 figure rare coins. We just returned from the Long Beach Coin Expo we sold coins in ALL of these categories and where most dealers agreed that it was better than expected. To actually make money in any market, but especially in this kind of market, you must be willing to buy and sell at "current" levels. The biggest mistake I see made time and time again, is that collectors/dealers sell based on their cost. Your cost (or my cost) is irrelevant. You, as a collector, may have inherited a High Relief Saint (cost zero). Does this have any relevance in what you should sell it for? Of course not. It's worth XXX as a dealer to buy, and YYY to sell...period. There are coins that are rare or possess something special about them, and these may be difficult to value, but are usually the exception, and it is worth trying to find the "end user". If I overpay, or the market goes against me, I take my loss as quickly as possible. Inventory turn is key to profitability, especially with overhead costs.
There seems to be a mini-explosion of high-priced, high-quality silver rounds that are available now. I'm not sure how many of these are being purchased but I imagine it has to be quite a few with the variety being produced now.
@ErrorsOnCoins said:
What I just read is that ebay allows the B&M business to stay afloat.
I run an ebay business and have almost no overhead as I do not have a B&M.
EBay and PayPal fees are part of your overhead.
The words "almost no" imply some overhead.
Respectfully, I wouldn't call 10-13% "almost no" overhead, but I guess that is really an issue of semantics. To be sure, an online presence through eBay likely has a lower overhead than a brick or mortar, but I don't think it is negligible anytime 10-13% of incoming revenue is going to a third party rather than into my pocket (or to pay an obligation of mine like taxes).
What is the overhead for a good functional website?
I don't understand the question or your point. All of the costs incurred in the operation of your business that are not directly chargeable to your product are part of your overhead. That includes website creation, maintenance, hosting, etc. You can argue all you want that eBay is a good value which may or may not be true depending on what you're selling. Regardless, I don't think a double digit cut into potential profit is de minimis or "almost nothing."
10-13% may not be almost nothing, but if it's your only overhead then it's probably bearable. Frankly, I've rarely been happy with the results of anything that I've sold there. I'm not a believer that eBay is a good value. They do however generally offer better exposure than most websites.
Comments
Numismatist Market needs influx of new buyers spending money. I monitor PCGS 3000 and track vs year open.
Material based primarily on BV very liquid but of course bullion will determine what you will get.
I monitor PCGS 3000, Dollar Market (PCGS Index), gold, silver from some benchmark like Jan 01. I also know how I am doing at shows and online. Consequently I draw my own conclusions.
I will sit on material (unless positive GM) unless some situation forces blowout of some. At shows I have a lot of material priced at cost or bid plus 10 pct just to move it, be competitive as I can't operate on this kind of narrow spread on eBay. If people coming in show won't even buy at that then I know it was a bust anyhow (lack of real buyers).
I would suggest portfolio based on a mix of bullion material and numismatics you collect, enjoy bulking up on. Putting together a grading set of ones area of interest can be fun.
Yes there are keeper items I will sit on until sell at profit. Bullion I will blow out if need be.
That is quite true for some dealers. I've seen guys hold coins for years, even the bad buys which are totally hopeless for the foreseeable future.
Dead stock does you no good. Cash does if you know what to do with it. The smart dealers cut their losses and move on.
@ShadyDave: excellent post...it's not just young people who shop online and don't have time to go to shows...this is the how many and maybe most successful business people of all ages operate...they want top quality and they have the money...
One area LCS says the summer slowdown is about over, and early Christmas shoppers are starting to show up. Collector coins will continue to be profitable as long as they continue to walk in the door.
The other LCS continues to move bullion and dollars by the roll. Lots of people interested while metals are heating up.
Both have different customer bases that keep the lights on. Very nice to see that some B & M shops can do it with $0 in sales on the internet.
Who could blame them? Why would anyone sell a rare, PQ coin for the same prices as the overgraded garbage that has flooded the market in recent months? I think a problem is that many holders of PQ coins are so adverse to grade inflation, they refuse to upgrade their coins so they can liquidate.
The words "almost no" imply some overhead.
I think it's the other way around: When no one wants them, they are cheap. When everyone wants them, they are expensive.
I disagree. Nothing causes a surge in metals buying and selling more than news that gold has hit a new high.
Respectfully, I wouldn't call 10-13% "almost no" overhead, but I guess that is really an issue of semantics. To be sure, an online presence through eBay likely has a lower overhead than a brick or mortar, but I don't think it is negligible anytime 10-13% of incoming revenue is going to a third party rather than into my pocket (or to pay an obligation of mine like taxes).
What is the overhead for a good functional website?
I don't understand the question or your point. All of the costs incurred in the operation of your business that are not directly chargeable to your product are part of your overhead. That includes website creation, maintenance, hosting, etc. You can argue all you want that eBay is a good value which may or may not be true depending on what you're selling. Regardless, I don't think a double digit cut into potential profit is de minimis or "almost nothing."
I don't know of any dealer who thinks the coin market is on fire. Is it slow? It is certainly better than 9-12 months ago. I think our business is a good barometer of overall activity since we literally sell everything...coins valued at a few dollars, 90% silver, all certified coins, and 6 figure rare coins. We just returned from the Long Beach Coin Expo we sold coins in ALL of these categories and where most dealers agreed that it was better than expected. To actually make money in any market, but especially in this kind of market, you must be willing to buy and sell at "current" levels. The biggest mistake I see made time and time again, is that collectors/dealers sell based on their cost. Your cost (or my cost) is irrelevant. You, as a collector, may have inherited a High Relief Saint (cost zero). Does this have any relevance in what you should sell it for? Of course not. It's worth XXX as a dealer to buy, and YYY to sell...period. There are coins that are rare or possess something special about them, and these may be difficult to value, but are usually the exception, and it is worth trying to find the "end user". If I overpay, or the market goes against me, I take my loss as quickly as possible. Inventory turn is key to profitability, especially with overhead costs.
There seems to be a mini-explosion of high-priced, high-quality silver rounds that are available now. I'm not sure how many of these are being purchased but I imagine it has to be quite a few with the variety being produced now.
10-13% may not be almost nothing, but if it's your only overhead then it's probably bearable. Frankly, I've rarely been happy with the results of anything that I've sold there. I'm not a believer that eBay is a good value. They do however generally offer better exposure than most websites.